Unemployment and Its Natural Rate 28 Unemployment and Its Natural Rate

Figure 1 The Breakdown of the UK Adult Population in 2004 (47.4 million) Employed (28.4 million) Labour Force (29.8 million) Unemployed (1.4 million) Economically inactive (17.6 million) Copyright©2003 Southwestern/Thomson Learning

Table 1 The Labour Market Experience of Different Groups Copyright©2004 South-Western

Figure 2 Unemployment Rate Since 1971 Copyright©2003 Southwestern/Thomson Learning

Figure 4 Unemployment from a Wage Above the Equilibrium Level Labour supply Surplus of labour = Unemployment Labour demand Minimum wage LD LS WE LE Quantity of Labour Copyright©2003 Southwestern/Thomson Learning